HSBC shuts global payments app Zing as CEO Georges Elhedery seeks to slash costs; 400 jobs may be axed

At least 400 employees of HSBC are likely to lose jobs after the bank’s decision to shut international payments app Zing, news agency Reuters reported.

Georges Elhedery, Chief Executive Officer at HSBC, has instigated a series of changes to drive down costs since stepping into the role last year.

The staff at risk of redundancy will be informed from Thursday, the report said citing a source.

The layoffs would include a substantial number of non-HSBC external customer support staff, it added.

Europe’s largest bank has not disclosed how many jobs would be lost.

“Following a strategic review of Zing within the HSBC Group and after careful consideration, we have made the decision to close Zing and integrate its underlying technology platform into HSBC,” a spokesperson for the bank said in a statement.

“HSBC is focused on increasing leadership and market share in the areas where it has a clear competitive advantage, and where it has the greatest opportunities to grow and support our clients,” the statement said.

Lower transaction fees

The Zing app was launched by HSBC just a year ago, initially targeting UK-based customers using fintech rivals like Revolut and Wise, which have sought to undercut big banks with lower transaction fees.

The app was designed to complement HSBC’s Global Money product available to its international Wealth and Personal Banking customers, and to target non-HSBC customers who could help broaden the bank’s traditional customer base.

“But management interest in building out Zing to mount a serious challenge to competitors has waned since Elhedery took charge in September,” the report said citing the source.

Further investment in Zing was judged an inefficient use of capital, the source said.

Additional lower-ranking job cuts are also expected in the first quarter, with bank management keen to offset headwinds to earnings from lower interest rates, China’s economic chills and geopolitical tensions.